Largo News Release Largo sent out an e-mail alert today regarding the Resource Investing News article posted not this site earlier. In addition it includes a piece of information from Roskill Information Services projecting an annual 6.5% increase in vanadium demand. Here is the alert:
Shareholders and friends,
On March 27th, 2013 Evraz, who is the largest producer of vanadium outside of China, announced its intention to divest of its key South African vanadium asset.
This morning Resource Investing News published an article entitled “Could South Africa’s Vanadium Loss be South America’s Gain” that outlines the impact of this sale on the vanadium market.
https://resourceinvestingnews.com/53397-could-south-africas-vanadium-loss-be-south-americas-gain.html
South Africa has traditionally been the largest producer of vanadium (China is now the leading producer); however, in recent years, social and political instability in the region has driven production rates down and caused an increase in operating costs.
We believe that this sale marks a fundamental shift in the vanadium market. The vanadium market is projected to be growing at 6.5% per annum, and as this article suggests, if companies continue to diversify their assets away from South Africa, the Maracas project will likewise continue to represent an alternative for a stable, long-term source of supply.
View all our recent notes to shareholders here
Sources:
Evraz Press Release: https://www.evraz.com/media/news/2641/
Roskill Information Services, 2013